Work on schedule for energy efficiency upgrade in Belchertown

BELCHERTOWN – Work is on schedule for an energy efficiency upgrade authorized by Town Meeting in May, and selectmen have authorized the use of either traditional tax-exempt bonds or qualified energy conservation bonds to pay for the work.

The town has a contract with Siemens Corp. for the installation of roughly $3.3 million worth of energy upgrades for town and school buildings.

The agreement was worked out through the state program that allows cities and towns to enter contracts for energy upgrades and pay for the work with money borrowed based on energy cost savings.

Siemens has guaranteed that the upgrades will save the town $256,000 annually for a period of 17 years. These savings are based on fuel and electricity prices for 2010.

If the Siemens cost-saving estimate falls short, Siemens is obligated under the contract to cover the difference.

Public Works Director Steven J. Williams said a major piece of the work, the replacement of the 85-year-old boiler in the basement of Town Hall, will be ready when the heating season starts in the fall.

The old boiler has been removed and a new one has been moved in and is 75 percent installed, Williams said.

“The work is certainly on schedule,” he said. “It will probably continue through the winter and wrap up next spring.”

Other pieces of the project include a new roof and more insulation at the Senior Center, heating and air-conditioning upgrades at the Recreation Building and Freedom Center, and more efficient heating control systems at several schools and other buildings.

A 50-year-old boiler at Jabish Brook School is also being replaced this summer.

The schedule was designed to have as much work as possible at the schools completed before the school year starts.

The town will wind up borrowing less than $3 million for the project because it will be able to use two state grants, a $160,917 Green Communities grant and a $148,000 Thermal Efficiency grant.

Town Treasurer Lisa Banner told the selectmen that traditional tax-exempt municipal bonds and qualified energy conservation bonds are both options when the town borrows the bulk of the money for this project.

Banner said a decision will be made in a few months based on which type of bond makes the best financial sense for the town at the time.